I started Insurance Blog by Chris™ because I have a passion for insurance. Here at the blog, our job is to educate and inform people about the best insurance for them. Since then, we have grown into national brands with a large team of researchers helping people understand all forms of insurance.

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Rachael Brennan has been working in the insurance industry since 2006 when she began working as a licensed insurance representative for 21st Century Insurance, during which time she earned her Property and Casualty license in all 50 states. After several years she expanded her insurance expertise, earning her license in Health and AD&D insurance as well. She has worked for small health insu...

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Reviewed by Rachael Brennan
Licensed Insurance Agent

UPDATED: Nov 9, 2020

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Can you obtain life insurance if you’re unemployed?

Everyone, including those who are unemployed, still need life insurance to protect their loved ones.

The question then is whether a life insurance company will approve your life insurance application if you’re not working.

Unfortunately, the answer to that question isn’t a simple yes or no answer because being approved or declined may depend on a number of factors.

Quick Guide to Life Insurance If You’re Unemployed

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Life Insurance if You’re Unemployed and Financial Justification

The primary drawback in getting approved for a life insurance policy if you are unemployed will be whether or not the insurance company feels comfortable in your ability to pay for the policy.

Buying an insurance policy is not just an expense to you, it is also an investment made by the life insurance company. When you apply for a policy, the insurer will most likely arrange to have you medically examined.

This examination will necessitate that you are examined by a doctor and that certain medical tests will have to be performed. Your medical condition may even require additional tests.

RELATED: 5 Critical Tips You Must Know Before Buying Life Insurance

The costs for these medical examinations and medical tests are an expense amounting to several hundred dollars which is absorbed by the insurer. Additionally, the life insurance company will also have to bear the administrative costs in setting up a policy.

So, for a life insurance company to take you on as a client, they will want to feel confident that you have the ability to pay for a policy; that you will continue with a policy, and that you won’t end letting the policy lapse after only having the policy in force for a few months.

However, if you are unemployed, you shouldn’t necessarily be discouraged about applying for a policy because there are some circumstances where a life insurer may be more confident about taking you on as a client.

It also depends on the amount of life insurance and the type of policy that you want to buy.

For example, a term life insurance is a lot less expensive than a permanent policy such as a whole life or universal life insurance policy.

If you’re looking for a small policy to cover funeral costs or an asset like a home, you’re more likely to be considered more favorably.

Get Rates From Haven Life!

Factors to Help the Unemployed Get Approved for Life Insurance

To be seen positively by a life insurance company and get your application, make sure you advise your insurance agent/company about any of the following:

  • If have any assets such as if you own a home, then you may be viewed more favorably during the application process.
  • If you have only been unemployed for a short period of time, and especially if it’s a situation involving a temporary lay-off, then make sure you advise the insurer that you will likely be working again in the near future.
  • If you have good training, skills and have earned a decent income in the not too distant past then this information will also help in making the life insurance company more confident about your ability to manage and pay for a policy.
  • If your employment prospects look more promising for your particular field or specialization, then make sure you advise the agent or company about the more positive outlook for your future employment prospects.

Can you be Denied for Life Insurance if You’re Unemployed?

Unfortunately, there will be a number of situations where many if not most life insurance companies may not consider you for a policy.

The most likely scenarios may occur in situations when you have not worked for a very lengthy period of time or were only working part-time and did not earn a great deal of income.

In most of these situations, if you cannot show the life insurance company that you have some means or ability to pay for a policy, then it is very likely your application will be postponed until you find employment.

RELATED: Check Sample Life Insurance Rates by Age (No Personal Info Required)

Talk to an Independent Life Insurance Agent

Don’t be discouraged if you are unemployed as not everyone’s circumstances are the same.

If your situation is only temporary and you have some assets, then your best approach in finding a more lenient company to give you a policy is to talk to an independent agent like me.

An independent agent like myself has access to dozens of life insurance companies so I know which companies may be more lenient than others.

I also know which questions to ask you about your individual circumstance which puts me in a better situation to give the best possible advice.

The main thing is not to simply give up because you are unemployed because everyone needs life insurance and you might an especially important need for a policy right now.

Where to Apply for Life Insurance if You’re Unemployed

You always want to talk to an independent agent like myself. We can access and research dozens of companies so you are assured we will find the best policy at the most affordable rates.

If you are unemployed, don’t let that dissuade you because we can give you valuable advice and help you to find a policy that suits you.

Whatever your needs or questions then please call me direct at 877-443-9467.